Apple may start buying cobalt for batteries directly from miners, fearing shortages

Puffed up iPhone battery explodes during replacement process

That the Apple is taking several steps to become more independent in the production of their devices, depending less and less on suppliers and other companies, is nothing new for anyone. But the next step for Tim Cook and his gang may be the most advanced in this regard so far – and reason has nothing to do with supposed technological independence, but with something much more basic.

According to the Bloomberg, Apple would be entering into negotiations to buy cobalt directly from mining companies in Africa; the element, as is well known, is one of the main ones used in the manufacture of lithium ion batteries that basically equip every modern mobile device.

According to the report, Apple started discussions about the move about a year ago, and probed contracts with mining companies guaranteeing the direct supply of “thousands of tons of cobalt a year for at least five years”, without mentioning values ​​or even a guarantee that the decision can go ahead. The Democratic Republic of Congo is the country with a large advantage in mining the element, and about 65% of all cobalt supplied in the world comes from there; the price of the element has tripled in the last few months and now a ton of cobalt comes out on average $ 80,000.

Apple’s main reason for the move is clear: a prospect of scarcity of the element in the near future. With a series of new equipment, especially electric cars (which need around a thousand times more cobalt than a smartphone battery), incorporating lithium ion batteries, it is possible that the situation of cobalt will become more delicate and become impossible for Apple, with its extremely high demand, remains dependent on the supplier contract with African mining companies. By guaranteeing a direct receipt route, the company is calm about the future and can still save some money.

Direct supply of cobalt can bring yet another advantage for Apple: by choosing the mining company (or the miners) with which it will negotiate, the company can avoid accusations of using material from regions that violate human rights – as is well known , mining in Africa is a breeding ground for serious violations of human integrity and labor rights, with numerous cases of child or slave labor.

Apple, as expected, did not comment on the matter.

via MacRumors